KNX Bull Call Spread Strategy
KNX (Knight-Swift Transportation Holdings Inc.), in the Industrials sector, (Trucking industry), listed on NYSE.
Knight-Swift Transportation Holdings Inc., together with its subsidiaries, provides truckload transportation services in the United States, Mexico, and Canada. The company operates through four segments: Trucking, Logistics, Less-than-truckload (LTL), and Intermodal. Its trucking services include irregular route, dedicated, refrigerated, flatbed, expedited, dry van, drayage, and cross-border transportation of various products, goods, and materials. The company also provides logistics and intermodal services, such as brokerage, intermodal, and certain logistics; freight management; and non-trucking services. In addition, it offers various support services, including repair and maintenance shop services, warranty, insurance, and equipment leasing; and trailer parts manufacturing and warehousing services, as well as engages in the driving academy activities. In addition, it offers regional direct services to customers national transportation needs by utilizing carriers for coverage areas outside networks.
KNX (Knight-Swift Transportation Holdings Inc.) trades in the Industrials sector, specifically Trucking, with a market capitalization of approximately $9.71B, a trailing P/E of 285.62, a beta of 1.15 versus the broader market, a 52-week range of 38.63-67.75, average daily share volume of 3.2M, a public-listing history dating back to 1994, approximately 35K full-time employees. These structural characteristics shape how KNX stock options price implied volatility around earnings windows, capital events, and macro-driven sector rotations.
A beta of 1.15 places KNX roughly in line with broader market moves, so the strategy payoff and realized volatility track the index-equivalent baseline. The trailing P/E of 285.62 is on the rich side, which tends to correlate with higher earnings-window IV expansion as the market debates whether forward growth supports the multiple. KNX pays a dividend, which adjusts put-call parity and shifts the ex-dividend pricing across the listed chain.
What is a bull call spread on KNX?
A bull call spread buys an at-the-money call and sells an out-of-the-money call at a higher strike for defined risk and defined reward bounded by the strike width.
Current KNX snapshot
As of May 15, 2026, spot at $69.30, ATM IV 42.10%, IV rank 46.34%, expected move 12.07%. The bull call spread on KNX below is built from the same end-of-day chain, with strikes snapped to listed contracts and premiums pulled from the bid/ask midpoint at a 34-day expiry.
Why this bull call spread structure on KNX specifically: KNX IV at 42.10% is mid-range versus its 1-year history, so strategy selection should anchor more to the directional thesis than to the IV regime, with a market-implied 1-standard-deviation move of approximately 12.07% (roughly $8.36 on the underlying). The 34-day window matched to the front-month expiry keeps theta exposure bounded while still capturing the post-snapshot move; longer-dated KNX expiries trade a higher absolute premium for lower per-day decay. Position sizing on KNX should anchor to the underlying notional of $69.30 per share and to the trader's directional view on KNX stock.
KNX bull call spread setup
The KNX bull call spread below is built from the end-of-day chain, with each option leg priced at the bid/ask midpoint of its listed strike. With KNX near $69.30, the first option leg uses a $70.00 strike; additional legs (when the strategy has them) anchor to spot-relative offsets. Premiums come from the bid/ask midpoint on the listed KNX chain at a 34-day expiry; the cross-strike IV skew is reflected directly in the per-leg values rather than approximated. Quantity sizing assumes one contract per option leg (or 100 KNX shares for the stock leg in covered calls and collars).
| Action | Type | Strike / Basis | Premium (est) |
|---|---|---|---|
| Buy 1 | Call | $70.00 | $3.15 |
| Sell 1 | Call | $72.50 | $1.95 |
KNX bull call spread risk and reward
- Net Premium / Debit
- -$120.00
- Max Profit (per contract)
- $130.00
- Max Loss (per contract)
- -$120.00
- Breakeven(s)
- $71.20
- Risk / Reward Ratio
- 1.083
Max profit equals strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-call strike plus net debit.
KNX bull call spread payoff curve
Modeled P&L at expiration across a range of underlying prices for the bull call spread on KNX. Each row is one sampled price point from the computed payoff curve; the full curve uses 200 price points internally before being summarized into 10 rows here.
| Underlying Price | % From Spot | P&L at Expiration |
|---|---|---|
| $0.01 | -100.0% | -$120.00 |
| $15.33 | -77.9% | -$120.00 |
| $30.65 | -55.8% | -$120.00 |
| $45.97 | -33.7% | -$120.00 |
| $61.30 | -11.5% | -$120.00 |
| $76.62 | +10.6% | +$130.00 |
| $91.94 | +32.7% | +$130.00 |
| $107.26 | +54.8% | +$130.00 |
| $122.58 | +76.9% | +$130.00 |
| $137.90 | +99.0% | +$130.00 |
When traders use bull call spread on KNX
Bull call spreads on KNX reduce the cost of a bullish KNX stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
KNX thesis for this bull call spread
The market-implied 1-standard-deviation range for KNX extends from approximately $60.94 on the downside to $77.66 on the upside. A KNX bull call spread caps both the risk and the reward of a bullish position; relative to an outright long call on KNX, the spread reduces the cost basis but limits the maximum profit to the strike width minus net debit. Current KNX IV rank near 46.34% is mid-range against its 1-year distribution, so the IV signal is neutral; the bull call spread thesis on KNX should anchor more to the directional view and the expected-move geometry. As a Industrials name, KNX options can move on sector-level news flow (peer earnings, regulatory updates, industry-specific macro data) in addition to KNX-specific events.
KNX bull call spread positions are structurally moderately bullish; the modeled P&L assumes European-style exercise at expiration and ignores early assignment, transaction costs, dividends paid before expiry on the stock leg (when present), and the bid-ask spread on the listed chain. KNX positions also carry Industrials sector concentration risk; news flow inside the sector (peer earnings, regulatory shifts, supply-chain headlines) can move KNX alongside the broader basket even when KNX-specific fundamentals are unchanged. Long-premium structures like a bull call spread on KNX are particularly exposed to IV-crush risk through scheduled events (earnings, FDA decisions, central-bank meetings) where IV typically contracts post-event regardless of the directional outcome. Always rebuild the position from current KNX chain quotes before placing a trade.
Frequently asked questions
- What is a bull call spread on KNX?
- A bull call spread on KNX is the bull call spread strategy applied to KNX (stock). The strategy is structurally moderately bullish: A bull call spread buys an at-the-money call and sells an out-of-the-money call at a higher strike for defined risk and defined reward bounded by the strike width. With KNX stock trading near $69.30, the strikes shown on this page are snapped to the nearest listed KNX chain strike and the premiums come straight from the end-of-day bid/ask midpoint.
- How are KNX bull call spread max profit and max loss calculated?
- Max profit equals strike width minus net debit times 100; max loss equals net debit times 100. Breakeven is long-call strike plus net debit. For the KNX bull call spread priced from the end-of-day chain at a 30-day expiry (ATM IV 42.10%), the computed maximum profit is $130.00 per contract and the computed maximum loss is -$120.00 per contract. Live intraday quotes will differ as the chain moves through the trading session.
- What is the breakeven for a KNX bull call spread?
- The breakeven for the KNX bull call spread priced on this page is roughly $71.20 at expiration, derived from end-of-day chain premiums. Breakeven is the underlying price at which the strategy's P&L crosses zero ignoring transaction costs and assignment risk. The current KNX market-implied 1-standard-deviation expected move is approximately 12.07%; if the move sits well outside the breakeven distance, the structure's risk-reward becomes correspondingly tighter.
- When should you consider a bull call spread on KNX?
- Bull call spreads on KNX reduce the cost of a bullish KNX stock position by selling a higher-strike call; suited to moderate-move theses where price reaches but does not vastly exceed the short strike.
- How does current KNX implied volatility affect this bull call spread?
- KNX ATM IV is at 42.10% with IV rank near 46.34%, which is mid-range against its 1-year history. Strategy selection depends more on directional thesis and expected move than on a strong IV signal.